If you’re looking for ways to improve your Credit Score as soon as possible, then your Credit Card can certainly help you do just that. Don’t believe us? Read on to know more!
Is your low Credit Score giving you sleepless nights? Well, you certainly aren’t the only one. There are many like you out there that worry about their low Credit Scores. However, the vast majority tend to ignore the source of the problem and go about their lives wondering why their Credit Score isn’t improving.
Luckily for you, we have a solution to your problem. And that solution comes in the form of that little, plastic, rectangular thingy peeping out of your wallet called a Credit Card. We’re sure you’re staring at your screen raising an eyebrow or three at what you just read. And we totally feel you. After all, how could your Credit Card help you increase your Credit Score when it’s one of the reasons why you Credit Score is in a mess in the first place.
Well, you’d be surprised to know that your Credit Card, as with everything in life, can be an absolute godsend if used wisely or could be the devil incarnate if used frivolously. So, without further ado, we’re going to show you how you can use your Credit Card to boost your Credit Score before you know it.
Additional Reading: Best Ways To Get Rid Of The Scary Credit Card Debt
Pay Your Bills On Time
If you’ve been dilly-dallying on making your Credit Card bill payments on time every month, now is the time to put a full stop to it. Not paying your bills on time has a major effect on your Credit Score and can drag it down in no time at all.
It’s pretty simple. Set up an automatic payment system through your netbanking that will debit your Savings Account every month on a certain date and divert the funds towards your Credit Card. This way, you won’t have to worry about missing a payment ever again. Do this and watch your score increase dramatically in a short span of time.
Additional Reading: Should You Set Up Automatic Payment For Your Credit Card Bills?
Watch Your Credit Utilisation
Make sure you don’t use more than 30% of your Credit Card’s limit. By keeping your usage at a low or manageable level, you show lenders that you are a responsible Credit Card user and can be trusted with handling credit.
This will go a long way towards ramping up your score in time and also make you more creditworthy in the eyes of banks and lenders if the time ever comes when you need to approach them for loans or another Credit Card.
Additional Reading: How To Maintain A Low Credit Utilisation Ratio
Ask Your Bank To Give You A Higher Credit Limit
Here’s a nifty way to positively affect your Credit Score. Ask your bank to increase the limit on your Credit Card. By doing this, you can maintain a healthy credit utilisation ratio without too much trouble. Just make sure you don’t go spending recklessly just because you have a higher credit limit now.
Additional Reading: Why You Should Ask For A Higher Credit Card Limit
Pay Utility Bills
Got another Credit Card that you don’t use? Well, use it to pay your utility bills like your phone bill, internet bill, electricity bill etc. This will also help you build your Credit Score over time. Just make sure you pay the dues every month in full if possible.
Additional Reading: Put An End To Your Utility Bill Woes
We hope that was a fairly eye-opening read. If you don’t have a Credit Card already and are looking for one, then you’ve certainly come to the right place. All you have to do is apply for a Credit Card through BankBazaar and you’ll get a Rs. 2,000 Amazon voucher on successful bank approval of your application. But hurry! This offer lasts only until 31st March 2019, so hop to it!